2005-02-28                     Senate Journal                      Page 0416
SB 122                                                                                            
SENATE BILL NO. 122 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act establishing the Alaska capital income                                            
          account within the Alaska permanent fund; relating to                                     
          deposits into the account; relating to certain transfers                                  
          regarding the Amerada Hess settlement to offset the                                       
          effects of inflation on the Alaska permanent fund;                                        
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
                                                                                                    
Governor's transmittal letter dated February 25:                                                    
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill establishing the State of Alaska Capital Corporation                            
(corporation).  The corporation would be a public corporation with the                              
authority to issue bonds to finance up to $350 million in state capital                             
improvements, including the cost of issuing the bonds.                                              
                                                                                                    
My intent is that the debt service on bonds issued by the corporation                               
would be annually covered by appropriations from the earnings on the                                
settlement proceeds derived from the Amerada Hess royalty                                           

2005-02-28                     Senate Journal                      Page 0417
settlement.  I also am transmitting a companion bill that would                                     
separately identify the Amerada Hess earnings so that they are                                      
available to the legislature if there is a desire to use the money for this                         
purpose.                                                                                            
                                                                                                    
The financing technique proposed in this bill would permit the state to                             
leverage a funding source to obtain money for needed capital                                        
improvements from the sale of bonds on the major financial markets.                                 
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor